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Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Chinese TAIPEI
APEC Workshop on Recent Advances in Utility Based Financial
Mechanisms that Support Renewable Energy and Energy Efficiency
Promoting Grid Connected Renewable Energy System
and
Recent Activities of Energy Conservation
in Chinese Taipei
H. (Tom) Lee, Dr of Eng
March 31, 2009 Honolulu, Hawaii, USA
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 1
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Outline
Energy Policy in Chinese Taipei
I. Promoting Grid Connected Renewable Energy System
Chinese TAIPEI
Incentives for Renewable Energy in Chinese Taipei
Grid Connected Wind Turbines
Grid Connected Solar PV System
Grid Connected Biogas Power System
Renewable Energy Development Bill
II. Recent Activities of Energy Conservation
Target for Overall Energy Conservation in Chinese Taipei
Energy Audit and Incentives for Energy Conservation Technologies
ESCO Models
Other Activities of Energy Conservation
Concluding Remarks
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 2
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Sustainable Energy Development
Main Items
Fostering
Foundation
Chinese TAIPEI
All rights reserved.
Clean
Rationales
Goal
Energy Policy in Chinese Taipei
Promote Renewables
Develop green energy
industries
Reinforce pricing
mechanism
Technology
Development
Adjust industry structure
Liberalize energy markets
Institutional
Mechanism
Strengthen energy
conservation
Enhance energy
supply diversity
Public
Participation
APEC EGNRET 32 (2009) Hawaii, USA 3
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Chinese Taipei
Chinese TAIPEI
Part I. Promoting Grid Connected
Renewable Energy System
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 4
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Targets of Renewable Energy Promotion
Renewable energy shall contribute 15%, in terms of
installed capacity by 2025.
year
2008
Chinese TAIPEI
Renewables
2025
Installed Capacity
(MW)
Rate
(%)
Installed Capacity
(MW)
Rate
(%)
1. Hydropower
1,939
5.0
2,500
4.4
2. Wind Power
358
1.0
3,000
5.3
3. Solar PV
4.1
0.0
1,000
1.8
4. Geothermal
-
-
150
0.3
5. Biomass
772
2.0
1,400
2.5
6. Fuel Cell
-
-
200
0.4
7. Ocean Energy
-
-
200
0.4
3,073
8.0
8,450
15.1
Total
8. Solar Thermal
Water Heater
1.78 million m2
4.09 million m2
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 5
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Incentives for Renewable Energy in Chinese Taipei
Type
Incentives
Chinese TAIPEI
Electricity Taipower Renewable
Purchase Energy Premium
Program Purchase Program
Solar PV
1. Purchase price is US$ 0.063/kWh.
2. The approved purchase capacity has
reached 298 MW.
3. Total purchase capacity will be 600 MW.
Solar PV Systems
Demonstration Program
1. Subsidy: US$ 4,700 /kW;
50% of installation cost max 382
2. demonstration projects with an installed
capacity of 4.099 MW.
Biogas Power
Generation: Landfills
specified
Electricity generated from biogas of landfills
being granted with a premium of US$
0.0156/kWh
Biogas Power
Generation: General
1. Grants up to US$1,000/kW for new
generators
2. Installed capacity must exceed 300 kW
(could be completed by Nov 30, 2009)
3. Ceased by end of 2008
Biogas
Source: BOE (2009)
All rights reserved.
Current Status
(cont.)
APEC EGNRET 32 (2009) Hawaii, USA 6
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Incentives for Renewable Energy in Chinese Taipei
(cont.)
Incentives
Type
Chinese TAIPEI
Statute for Industrial
Upgrade
Business Entities
Purchasing Energy
Tax
Saving Equipment or
Incentives Using New Energy
Equipment or
Technology Tax Credits
Customs Duty
Current Status
1. Business entities investing in new and
clean energy can enjoy a tax credit up to
7% of the equipment cost.
2. Investments in new and clean energy
industry can enjoy income tax credits,
ranging from 10%~20% of the investments.
3. Two-year accelerated depreciation.
4. Low interest loans:up to the 2-year postal
saving floating interest rate, plus 2.45%.
Duty Exemption for imported equipment
without domestic manufacturer.
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 7
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Grid Connected Wind Trubines
Status -
Chinese TAIPEI
At the end of 2008, 190 wind turbines had been installed,
corresponding to a total capacity of 358 MW.
The First Phase of Development
Project on Offshore Wind Energy has
been approved by the Executive
Yuan (Cabinet)
Location of Wind Farms
平均
Wind
風速
speed
Targets - 3,000 MW by 2015
Completed
完工
Under
const.
建造中
Planning
m/s
公尺
/秒
規劃中
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 8
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Grid Connected Solar PV System
Status -
Chinese TAIPEI
382 demonstration projects with
the installed capacity of 4.099
MW at the end of 2008.
Subsidy upto US$ 4,700/kW, 50%
of installation cost maximum.
Targets - 1,000 MW by 2015
Fu-Bon Memorial Building, 19.8 kW
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 9
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Grid Connected Solar PV System
Main Stadium for 2009 World Game, Kaohsiung
Installed Cap.: 1 MWp
Chinese TAIPEI
Generation: 1,100 MWh/year
Source: KOC (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 10
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
2008 APEC Photovoltaic Conference
October 7~9, 2008 Taipei World Trade Center
Background
Chinese TAIPEI
APEC Economies area owns the biggest capacity of solar cell
production in the world.
APEC Economies has become the most important sectors of supply
chain in the solar energy.
Purpose
To establish infrastructure for the utilization of PV energy in the
APEC region.
The 2008 APEC PV Conference provides a timely platform and
opportunities for all APEC Member Economies to address PV
promotion issues, discuss technology development, exchange
information and experience of promotion scheme in the region.
11 APEC Economies represented
Australia, China, Hong Kong, Japan, Mexico, Malaysia,
Singapore, Thailand, USA ,Vietnam and Chinese Taipei
All rights reserved.
Source: BOE (2008)
APEC EGNRET 32 (2009) Hawaii, USA 11
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
2008 APEC Photovoltaic Conference
Chinese TAIPEI
Conclusions
1 Sharing of information at both government and industry levels to be
continued
2 Keeping the APEC PV agenda moving forward
3 Compilation of information and opinions collected from represented
member economies to be done and distributed back to allow APEC
economies to set common benchmarks
4 Standardization of training materials and certification of PV engineers
and technicians; existing lengthy and inconsistent verification processes
must be made more efficient
5 Financing issues not adequately explored; requiring more discussion in
the future
6 Build on past APEC projects and workshops
7 Report results to the EGNRET 31 Meeting
and the 36th EWG Meeting
Source: BOE (2008)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 12
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Grid Connected Biogas Power System
Chinese TAIPEI
Status Operational biogas power
generation systems include
four landfill sites, three industrial
wastewater treatment plants,
and some pig farms, with a total
installed capacity of 22.4 MW.
Targets It is estimated that there still are
six landfill sites with a potential
installed capacity of more than
21.2 MW. Biomass energy
targets is 1,400 MW by 2015.
Sanzhuku Sanitary Landfill Site, Taipei
Capacity: 6.81 MW
Treatment: 4,256 m3/hr (1 atm, 25oC)
17.33 Mm3/yr Biogas (2003)
Photo: TEPA (2001) ; Source: ITRI (2008)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 13
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Chinese TAIPEI
Renewable Energy Development Bill (Draft)
The Bill has been approved by the Economic Commission
of Legislative Yuan and waiting for final approval.
Obligations: power utilities to grid integrating and buying in
of renewable electricity; public constructions to install PV
Incentives: fixed feed-in tariffs for renewable electricity;
installation subsidies for the public using renewables from
PV fuel cells and hydrogen
Deregulation: loosening limitations of land use; unbinding
qualification for installing renewable power facilities
Specific Fund supporting finances: power utilities using
fossil and nuclear fuels should render funding as monetary
sources of subsidies to reduce the impact to government
budget
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APEC EGNRET 32 (2009) Hawaii, USA 14
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Renewable Energy Development Bill (Draft)
Chinese TAIPEI
Renewable Energy Development Fund—the principle of
balancing revenue and expenses based on projected need
for subsidies
• Subsidy for feed-in tariffs (expenses): subsidizing the
differences between feed-in tariffs and Taipower’s avoided cost
• Feed-in tariffs: the government establishing a commission
consisted of scholars and experts to decide pricing formula,
tariffs, and make announcement annually
• Fund levying (revenue): based on the estimation of subsidizing
needs to levy funding from Taipower, IPP and the higher
capacity co-generators
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APEC EGNRET 32 (2009) Hawaii, USA 15
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Renewable Energy Development Bill (Draft)
Chinese TAIPEI
Measures to promote installation—increasing installed
capacity, facilitating technological improvement and
reducing costs
• Demonstration subsidy (expenses): those who install PV, fuel
cells and hydrogen generators eligible to apply for subsidy
• Incentive subsidy: those who install solar water heaters eligible
to apply for subsidy (alternative to thermal utilization and
supported by Oil Fund)
• Public constructions obligated to be installed with PV systems
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 16
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Renewable Energy Development Bill (Draft)
Power Purchase
Agreement
Taipower
Renewable Power
Generator
Power Generation Using
Fossil and Nuclear Fuels
Chinese TAIPEI
Traditional
Power
Feed-in Tariff
Subsidy
Render
Independent Render
Power
Producer
(IPP)
Render
Co-generation
Fund
Installation Subsidy
Electricity flow
Funding flow
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 17
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Chinese Taipei
Chinese TAIPEI
Part II. Recent Activities of
Energy Conservation
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 18
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Target for Overall Energy Conservation
in Chinese Taipei
Energy Intensity in Chinese Taipei
Energy Intensity in Taiwan
Former
Achievement
LOE / NT$ 1,000
Chinese TAIPEI
20%
12
10
8
6
4
2
0
1975
2006
Future Target
50%
2025
Year
Target: Total energy saving reaches 56.43 MKLOE by 2025
APEC Leadership meeting Initiating action to improve energy
efficiency by 25% between year 2005 and 2030.
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 19
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Action Plan for Energy Conservation in Energy Sector
Raising Efficiency of Transmission: Saving 5.4 MKLOE/yr
Chinese TAIPEI
Replacing with high-efficiency
generating units for
coal-fired power plant (Efficiency
raised by 3.5%) by 2025
Replacing with high-efficiency
generating units for
gas-fired power plant (Efficiency
raised by 5.5%) by 2025
Improving power
patch/transmission facilities
(Reducing line lost by 0.5%) by
2015
Taichung Coal-Fired Power Plant (Photo: Chi Po-lin, 2007)
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 20
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Energy Audit and Incentives for
Energy Conservation Technologies
1. Promoting the application of Building Energy Management
System
Chinese TAIPEI
2. Promoting the use of renewable energy
3. Promoting the auditing and benchmarking system to control the
building energy consumption
4. Promoting and setting up a incentive mechanism for designers
implementing energy efficiency design such as tax deduction,
low interest rate loan and multiplying the design fee, etc.
5. Promoting ESCO
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 21
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Preliminary Audit
1~2 days
Preliminary Suggestion
Free
Detail Energy Audit
Checking Energy Use and Energy Management
in Factories
Review the Need on ESCO Service
Verifying on the Savings and Benefits of
Preliminary Suggestion
Verifying the Needs on ESCO Service
Approach of
current
energy audit
in Taiwan
Measuring and Collecting the Detailed Data
Energy Audit for Planning the Further Service
Chinese TAIPEI
Days to weeks
E
S
C
O
Verification and
Modification on
Improvement Plan
Charged
Check the Contents of ESCO Services:
Baseline Setting, Scheduling, Monitoring
& Verification Methods
Guarantee for Guaranteed Saving Performance
Operational Management and Maintenance
Contract Duration
Contracting
Improvement Actions
Monitoring & Verification
Operational Management
Maintenance & Checking
Project Completion
All rights reserved.
ESCO’s Activities on Improvement Engineering
ESCO Services:
Checking & Verifying the Savings by contract
Operational Management & Maintenance for
Good Performance
APEC EGNRET 32 (2009) Hawaii, USA 22
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Other Activities of Energy Conservation
Encourage of Appliance Replacement
Chinese TAIPEI
From Oct. 1, 2008, a total budget of
NT$ 530 millions is provided by the
government to encourage the
replacement of old & lower efficient
appliances (e.g., air-conditioner,
refrigerator, and clothing washer).
Purchasing the high efficient products
with energy conservation label, a total
amount of NT$ 2,000 (~US$ 60) per
item cash rebate will be granted.
The program will be executed for 6
months and only apply to the
domestic manufactured products.
Source: BOE (2009)
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 23
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Other Activities of Energy Conservation
Energy Conservation & Carbon Reduction
Chinese TAIPEI
The government initiates an electricity price privilege program in
order to expedite energy conservation.
Discount electricity bill will be provide to residential sector, and
middle and elementary schools, the program started on July 1, 2008.
X% = (A-B) A 100%
where A= bi-monthly power consumption for the previous year;
B= bi-monthly power consumption for this year
All rights reserved.
Saving span
Discount rate
0≦ X <5%
95%
5%≦ X <10%
90%
10%≦X
80%
Source: BOE (2009)
APEC EGNRET 32 (2009) Hawaii, USA 24
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Concluding Remarks
Chinese TAIPEI
Accelerate the enactment of Renewable Energy Development Bill
to establish a sustainable environment.
Adjust the premium tariffs for renewable energy and rationalize
energy prices of fossil fuels taking into account their external costs.
Remove the obstacles in grid connection and power transmission
to promote the power generation from renewables.
Enhance energy productivity, and stress on energy conservation
continuously.
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 25
Chinese TAIPEI
Promoting Grid Connected RE System and
Recent Activities of Energy Conservation in Chinese Taipei
Photo: KOC (2009)
Main Stadium for 2009 World Game, Kaohsiung, Chinese Taipei
Thank you for your attention.
All rights reserved.
APEC EGNRET 32 (2009) Hawaii, USA 26